Why Comcast Corporation (CMCSA) Is Underperforming in 2025?

Comcast Corporation (CMCSA), the American multinational telecommunications organization, has been a dominant player in the cable-TV and internet service provider industry for decades. However, in 2025, the company has been underperforming compared to its historical performance and industry peers. As an investor, you might be wondering what factors have contributed to this underperformance. Let's dive into the key aspects that have led to Comcast's disappointing year.

1. Slowing Revenue Growth: Comcast's revenue growth has significantly slowed down in 2025. In the first nine months of the year, the company's revenue increased by only 2.1% year-over-year, compared to an average annual growth rate of 7.5% over the past five years. This slowdown can be attributed to increased competition in the cable and internet service provider (ISP) market, as well as a decline in the number of broadband subscribers.
2. Increasing Operating Expenses: Comcast's operating expenses have increased at a faster rate than its revenue, leading to a decline in operating margins. In the first nine months of 2025, the company's operating expenses increased by 4.5% compared to the same period in 2024, while its revenue increased by only 2.1%. This increase in operating expenses can be attributed to higher programming costs, increased marketing expenses, and higher costs related to the integration of acquired businesses.
3. Declining Free Cash Flow: Comcast's free cash flow has declined significantly in 2025 compared to its historical performance. In the first nine months of the year, the company's free cash flow was $7.6 billion, compared to $12.5 billion in the same period in 2024. This decline can be attributed to the company's increased capital expenditures, as well as the increased dividends and share repurchases it has been paying out to shareholders.
4. Stock Price Underperformance: Comcast's stock price has underperformed compared to its industry peers in 2025. As of October 2025, the company's stock price was down 14% year-to-date, compared to an average decline of 7% for its industry peers. This underperformance can be attributed to the company's slow revenue growth, declining operating margins, and declining free cash flow, as well as investor concerns about the company's ability to compete in the increasingly competitive cable and ISP market.